old prime minister dr mahathir mohamad says malaysia is proposing a new currency based on gold as this would be more stable than the current currency trading which is manipulative he said the precious metal could be used to evaluate import and export activities among east asian countries quote we can make settlements using that new currency using gold that currency must relate to the local currency as the exchange rate and that is something that can be related to the performance of that country that way we know how much we owe and how much we have to pay in the special currency of east asia he's saying like this is a for the trade region of east asia he wants a gold backed unit of account for trade so that we know for real what we're getting and who's cheating and who's not cheating so any way you can tell if you're making any money exporting and importing is if you have a yardstick or a benchmark. to apply your economics and you are sick has always been gold we went

into a period of monetization globalisation dollars ation after world war 2 where the us convince the world that you don't need a yardstick just take our word for it and the pie grows infinitely and you get partly infinite by and that's failed and countries like malaysia china russia and others are saying you know what i think we'll go use gold you know tell us what we're making or losing in gold and donald trump is really pushing this hard because he's saying that the us wants to withdraw from being a globalised nation they want to be a mercantile us nation and so the striving this is putting it into fast overdrive now well it also matches with what david graber has said in his book the history of debt and what we do during times of distrust between individuals within a society and between within nations within the global in the world so right now we have a system whereby people do not trust each other that's why we have the globalization that's why the u.s. . as with drawing from

a system where they feel they've been cheated even though it's a structure they created so you do see people not trusting each other nations not trusting each other and that's why you're seeing these suggestions for gold he said that the global market currently is tied to the us dollar which gives room for the currency to be manipulated just because that one country is affected there is infection to the other countries malaysia was very stable way back in 1997 but because of the problems that occurred in thailand during the asian financial crisis they said i like the i.m.f. and world bank sort of people that we must peg the malaysian currency also what happened the currency traders sold the malaysian currency down and the value of the malaysian currency depreciated it is not even the money that they have they never had any malaysian currency but nevertheless they were able to sell huge quantities of malaysian currency and what it is depressed of course they can buy and sell it at a higher price when it comes up the definition of naked short selling he's pointing

out very specifically that forex traders with unlimited lines of credit at 0 percent borrowing costs can sell counterfeit sale orders of any currency they want to manipulate it down versus the dollar and that's been the basis of the american empire now for decades and these countries it's been very difficult to extricate themselves from u.s. dollar germany because they had been bought the bill of goods that the world is going to grow and keep growing and you want to piece of that growth now it's clear that the world is reached its growth limitations both climatologically you can't grow the economy on a globe that's literally on fire or being flooded like corn prices are skyrocketing because corn in america is being washed out due to climate change as a way to profit from climate change i'll give you that if you want to make money.

rating on human extinction by corn right ok i understand that but getting back to the dollar it's a currency that is now in a hyper inflated bubble and once of pops you'll see a gap in gold from 1314 honor 227282900 we're going back to this notion of de globalization we see that in every nation around the world we see this notion of digital ization except for of course china which has been the big winner from globalization and they obviously do not want to stop at every rising power oweis benefits from globalization and they don't want to stop it but the empire wants to stop it we have a global economy whereby nobody trusts each other anymore and now we see that you know this notion of fake news and this fear of fake news in the sphere of the world that we ourselves have created all around us and ultimately goes to this fake prices this fake because there's no. measure of the economy and the fab

they conned me is the fabric of our society the fabric of our existence and we have no way of measuring it because there is no honest unit other than gold grams or bitcoin i would say here he says in terms of remember what happened in the malaysian in the asian currency crisis it was these guys these 4 extra could crash their economy even though they can't print malaysian currency that they had themselves to sell and yet they sold it off he said currency trading is not something that is healthy because it is not about the economic performance of countries but about manipulation anything that you have an oversupply will lose value anything that a shorter supply will increase in value so they sell huge quantities of money that they don't have because the amount of so big there is depression of the value right let's go through the looking glass once again on 4 x. trading and what's happened in the last 20 or 30 years there was a time when price discovery look at the price how to get to the prize it was a function of buyers and sellers more buyers price went up more sellers price went

down and you looked at that price and then you would recalculate your business needs based on the price that was now being discovered by the marketplace we live in a world today now where quantz. pick a price 1st and then fill in the trades to get to that price that's a complete repudiation of free market capitalism and it's the beginning or it's a part of autocracy by megalomaniacs running these trading desks and you know listen to cast by travis claiming who was interviewed by pump recently on his podcast talking about what he called kuantan quanta crime that when you get to a certain level in global for x. it's just extremely well capitalized quantz hedge funds abusing the system to see who can abuse the system more profitably than the other

guy and that's the result of the prices that are then reported as economic reality even though the prices in this case and almost every single instance of every market around the world now are completely fake but here you have genuine societies like malaysia it's a country filled with people and needs and wants and real like humans living there if their currency is not backed by anything but what if a computer says an algorithm if it's trading against the euro or the yen or the dollar then it has real world consequences where the people themselves are helpless however when they do do naked shorting of gold or silver for example there is an ultimate thing of delivery a physical if you start buying if you start taking gold off the market if you start taking silver off the market as when j.p. morgan had a massive naked short position on silver by one ounce of silver at $10.00 and that gives them makes it harder and harder for them to manipulate the price so here he's

saying that is like if we have a unit of account which is gold. then it leaves your schemes vulnerable you can't just print up gold because we know how much there is and you have to mine and you have to hold it and you have to verify it so here he's saying that this is a way to end those schemes and asked if the japanese yen or chinese yuan could be used as the common currency in asia he replied if we try to promote our own currency there will be conflict but if we have a common currency for east asia common trading currency that is not used in each country but for the purpose of settlement trade only then there will be stability but trying to promote the yen or the yuan that is the way to go again it's also gold standard and that's what ran the economy for most for most of recorded history it's been run on gold standard and selling because of the hokum and p.t. barnum quality of the federal reserve bank in new york to convince the world that

forget gold the dollar is going to give you a magical putting pie they were growth never ends and you too can be a hollywood star and ok work for a while but now it's breaking down it's breaking down as we've covered you know in los angeles san francisco new york and washington d.c. where prices of property can keep on going up that's how they keep you in gage and their manipulative system is that you have the asset which is the property and a they can make it keep on going up in price and you feel like you're winning but the rest of the world is looking at this this is a moment just like the 1971 when the guy in france asked for their gold back and they called the bluff that the ledger they were keeping on the amount of gold in their reserves was a law and he exposed that now they're in there with. this guy from the prime minister of malaysia saying as you say we don't even believe that they have the fake paper think dollars to back us that there is there's no even a indian and paper there but again it's like mafia capitalism you know currency war laser trade war war so the u.s.

has been operating like a mafia currency mafia and now the people are demanding actually to get their cash back like the mafia the u.s. will resort to evolve. once so quickly you know warren buffett has been the one of the chief beneficiaries of a u.s. dollar system he has wells fargo he has coca-cola and he's very against gold and so here is a tweet today i learned that the price of coke remained the same $1.00 nickel $0.05 for 70 years after it was 1st sold in a world where we've become accustomed to our money losing its value and being debased how is this possible and so they said on n.p.r. this is how they interview and you might think inflation would have been a problem for coca-cola the whole time by andrew young says there wasn't really inflation before the 1940 s. yes prices would be under up sometime sugar in the green has cost more but then they'd meander back down after the 1940 s. inflation is here to stay prices just keep going up what happened the u.s. went off the gold standard dollars no longer had to be backed by gold so we went

off the gold standard and prices continue to climb and climb and climb and climb and climb yeah you know the minimum wage if it kept up in the same way would have had we not gone up the goal center in $71.00 would be almost $50.00 an hour that would be the minimum wage 10 times higher almost than it is now anyway we're going to take a break and when we come back much more coming your way. you don't. know what will you know what you know but you know what if in your local grocery. that you. are bored.

with the. yes. he can. pretty. well wouldn't you be on the local pushing this on marco. rubio would mean there's just a total digital shift of the ease of lucas i want you. to. get on with life. officer. to get up off the ground began to pet him down. heard them freeze on the sounds of. grown man like mislead essentially.

twisted away from the officer. of his crew. the obvious or did they kind of lunge for the weapon once missed and then what happened on 3 swung at the observations didn't hit him i never saw any contact with. any kind of went back to where they were so the officers back here there try again 15 feet apart at this point and that's when the officer pulled out his gun and he bit on 3. but going back to the kaiser report it is my great pleasure to bring back once again one of the biggest mines in macroeconomics that guy over there gold

money dot com is the name is allister mcleod alister welcome back nice to be back max alister the u.s. federal reserve chairman this past week said that we should get rid of the word unconventional when related to monetary policy measures like quantitative easing that is it is now conventional policy year or thoughts you know anything to print money basically the last refuge of the scoundrel is printing money i think. i mean anything that supports the opportunity should just print their way out of trouble just what it's doing i mean next really they're saying m m t's a good idea this is not correct that when quantitative easing was introduced people said hey you're monetizing debt and debt monetization is always a recipe for hyperinflation a currency collapse every single country that's tried it has failed under at hyper

inflationary currency collapse and the response from central bankers was no that's not the case because this will only be temporary and weak as ben bernanke he said we can reverse quantitative easing in 15 minutes if we wanted to now here we are looking at quantitative easing 4 there is no reverse all this is massive ponzi scheme economics and is it not simply a case of debt monetization alister it is simply that yes i mean the idea that you can risk of the economy by deep basing the currency is absolutely use it because what you're doing is you're transferring wealth from people without their consent to the state. you know this this doesn't actually true. the economic outlook if anything it makes it look deteriorate that can be a temporary benefit and that's of course what they're playing on but there's nothing temporary about the policy now it is becoming permanent it's quite simple

they are printing money temporary benefits are almost by definition a ponzi scheme everyone loves it intell it suddenly collapses and let me ask you this that we have $11.00 trillion dollars in debt around the world now with at negative interest rates and that number a growing it would appear that not only are rates never ever going up again in any meaningful way and not only are rates going to be universally had 0 percent but we will also have not 11 trillion a negative interest rate but probably 80 or 90 or $100.00 trillion and negative interest rate out there is going that way isn't it because they just print print print and thought of it is to suppress the cost of borrowing and this is actually not so much to prove prospects for the private sector it's small to make government borrowing affordable that i think is the primary reason for doing q.e.

is printing money basically says that governments can finance that deficit and in the coming years the costs of welfare states will be escalating the amount of taxes that government collecting in real terms will be declining so how do you bridge that gap you print money that's where we go maybe you can settle an argument i've been having a dandy blanchflower former yes he was one of the top guys at the bank of england he's an economist i made the point i'm number of years ago that this type of quantitative easing doesn't fight the flay ssion in fact it causes deflation in that we mean the increase in zombie debt am i not now the winner of this debate ouster quite clearly you oh thank you how's a brilliant man. sir and let's move on ok thorough on that note it looks like the fed cuts yeah still the markets at all time highs of course but this is doesn't let

me ask you this donald trump love the fact that the markets are doing great and stock markets are going higher if that were true alister does it isn't that when you would see rates go higher higher rates indicate a booming economy not rates going down so a 4th out there well basically the devaluation of the stock market is if you like based on ultra low interest rates and the prospect perhaps as you just mentioned of even negative interest rates and you know on that basis your valuation for anything can be sky high that's all it is at some stage there will be a realisation in the market that the contraction of business in the real economy is actually beginning to be so serious that all these valuations are complete time sky and then there will be a massive return to earth the only exception i can think of is if governments actually step in like the japanese have and buy the market buy stocks and end up

owning a big chunk of stocks buying anything that comes into the market they could well do that because there is a fear among central bankers and this was expressed by county yesterday that there's an awful lot of collateral on the banks' balance sheets which is unmarketable there's a lot of collateral which is. or sorry ass it unlisted assets which are in public funds you know mutual funds unit trusts. you know hedge funds and all the rest of it and the problem is that if those asset values decline they're going to be uncovered if the public starts selling lease things they have got the liquidity in the fund soup. to pay out and we go to the tickler case in this country a guy called neil works that is a hot shot fund manager set up isn't fund management business few years back and is

very much the dotting of the industry he's had to suspend redemptions and one of his major fronts and this is creating a huge problem in my view that it's not the 1st of these instances that we will see the global economy becomes a roach motel easy to go in but you can't get out now let's talk about asset values for a 2nd and collateral and the remarks of mark carney because what we've seen over the past 30 or 40 years particularly going back to the reagan factor era of deregulation is this constant reclassification of collateral and what constitutes good collateral and the central banks whether it's basil agreement to or basil agreement 3 or the utterances of the bank of interest national title meant they are constantly lowering the bar what constitutes collateral it appears as though almost anything can be said or collateral at this moment and there is no good collateral anywhere by the definition of even 10 years ago and if that's true

then how do we price anything of interest rates are 0 and anything including you know bad war oem i forget what the word is for that off the top of my head guar a i think it's considered good collateral what kind of friggin a con me is this out there i think you've got a very good point because i mean the whole thing it's a crazy it defies analysis ridge and the central banks now got themselves into this awful mess they've only got one weapon and that's to print money as i constantly tell everybody and it just doesn't work and the fact is that if you print money you transfer wealth from people to the government or to the central bank or to the bank if they are creating bank credit. here basically i'm pope ish everybody and you've got no economy that is the end point if you like to which we are moving but it's basically trench warfare you know you have all the central banks are dug in

and instead of firing bullets all day long for no reason they just print money and the result will be the same a global catastrophe it or reparations will follow 11 country you know china will demand reparations from the u.s. the u.s. will become enraged and they'll probably you know as a lot of people have said currency wars lead to trade wars lead to hot wars so once this blows up and china demands reparations and the u.s. gets the short end of the deck of the new banking versailles agreement we're going to have you know this is how you this is how you get fascism this is how you get political extremism. your thoughts are thus absolutely right. america does have a huge problem and that is that she has been financing a so by if you like running a trade deficit and reporting the dollars which have been so to foreigners in

order to finance the government foreigners buy u.s. treasuries that story is now coming to an end no the problem for the american government is they cannot afford to stories come to an end and i think this is why they're gunning for china so hard what they want to do is make china an investment will for international portfolio money so guess what the money will go into the u.s. dollar deficits the hope it's almost as if they're saying we don't care about the rest of the world it can go to hell as far as we're concerned but america will be all right as long as we get the portfolio flows and i think this too simplistic analysis if you like from the american end if that is what they say but that's certainly the impression i get from their actions the story of china in the u.s. is that they have a reciprocal arrangement china's. has a lot of u.s. dollars on the balance sheet they keep their currency low to export their way into massive g.d.p. bust and that they would not rationally dump dollars but if we're going to

a hot war a trade war slash hot war and you enter into the fog of war china could irrationally dump a trillion or 2 trillion dollars worth of u.s. securities and crash the dollar and they could also courting to chris cook who's a respected energy analyst they are now the swing vote in the oil market and they have the ability to crash oil which of course have put every single american frack are out of business in america to once again be compiling depended on foreign energy sources i mean that's where things can go when you have this type of environment where as you point out every single problem is met with only one response money printing house or own the chinese i think i would caution and say that they are very unlikely to trigger. a nasty economic situation i think what they're more likely to do is just sort of respond in kind to what the americans do so you're not going to get an aggressive china i

believe unless they actually really do get cornered by. the neo cons in america in that in that situation they may have no alternative but to walk away from the dollar completely as you rather suggest i don't think they would necessarily just go and dump dollars but i think what they would probably do is they would probably drive up the go price that would be a far more subtle and logical thing to do and if go price went up to about 2200000 dollars i think that would impact on the dollar very negatively because the dollar is the other side of the trade and not only that but i think that people wouldn't blame the chinese for driving the. price of gold up i mean they would just say well you know you've got chinese you've got the russians you've got the turks you've got the indians you go all these people who go in and fight go to guess what america's monetary policy has driven them to do it in even

greater quantities and leave a little supply so i don't really think that china needs to do anything direct like dumping treasuries i think that will be too it would be too aggressive and it would lose china as the table says for support but she relies side america on a fair enough alister thanks again for being on the kaiser report that's my pleasure and that's going to do it for this edition of the kaiser report with me max kaiser in states here but i want to thank our guests for a pot of gold money dot com if you want to catch us on twitter it's kaiser report until next time by oh. you know toga 2017 the german newspaper defense published an article claiming that

the european union the last 30000000000 euros as a result of its very anti russian sanctions. particularly affected eastern europe many polish farmers went broke and even committed suicide. sometimes i can't account for as i go so far i guess i'm a poor top level part of the political and on the. question. on these young to have to finance my view on what i'm going to doesn't go on to have as a kind of unknown police don't get it and then let's continue the poor. if and if one song the smiths log. on doesn't dance with all the faults and that's what's in columns.

so you're using that brings this to the end of the series if we could just let josie marino walk away and say we decided to treat a stone post to a very special farewell bugsy by goes. on. we walk along an interesting part of the day but this time to go back to the punchline and thanks for putting on sr the body. with a red car the only thing that i didn't enjoy was my then singing quantize in moscow my dancing. on ice cream. in. the.

middle of the. well thankfully we nailed it literally there we go. what politicians do something. they put themselves on the line they get accepted or rejected. so when you want to be president. or somehow want to. have to go to the press that's what about for 3 of them or can't be good. i'm interested always in the waters of the how. things should. thank you. i. thank.

you. for. all charges against the russian investigative journalists. are dropped with saying those responsible for this case have been suspended. also this hour leaked messages suggest a corruption case against brazil former president lula da silva wasn't fact a stitch up designed to destroy his reelection bid. and we look at the controversial figure who's in syria is being mourned by parts of the mainstream media outlets are dubbing the men who condone this plot against president assad and praised the $911.00 attacks.